3. Can we make a brand of product
which can satisfy need of the entire
market ?
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4. Concept of Market Segmentation
Definition
Market segmentation is the process of dividing market into
small homogeneous groups with similar characteristics
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9. Behavioral segmentation:
1. Occasions
2. Benefits
3. Usage rate ( Low , Medium, High)
4. Loyal status
a) Hardcore loyal b) Split loyal c) Shifting loyal d)
Switchers
5. Buyer readiness
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10. Targeting
•Here marketer focuses his attention on targeting the
selected segment that is relevant to his product and
likely to respond positively
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11. Attractiveness of segment
•Size of the segment
•Growth rate of the segment
•Threat of substitute
•Bargaining power buyer
•Bargaining of supplier
•Required market share to get break even
•Expected profit margin for that segment
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12. Targeting strategies
•Undifferentiated targeting : In this strategy, the whole
target market is treated as one and it is considered that
there are no market segments that show uncommon
needs.The company believes on ‘one product-all
segments strategy’
•For example, Coca Cola sells Maaza, Mirinda, etc. and
does not differentiate between the target audience.
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13. Targeting strategies
•Differentiated targeting : In this marketing
strategy the company divides the market into
segments and uses different product for each
segment.This strategy is used by Hindustan
Unilever which sells soaps like Lifebuoy, Lux,
Rexona, Liril, Pears, Dove etc. and each has its
own market.
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14. Targeting strategies
•Concentrated targeting : In this
marketing strategy the company follows ‘one
product one segment policy’. For example SKF
Bearings produces bearings all types of
automotives.
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17. Product differentiation
•Product form
• Medicine can be in tablet , injection ,syrup form
• HUL’s Lux soap is available in cake form as well as liquid form
• VIM dish cleaner is available in bar as well as liquid form
•Design
• Good design takes care of functionality as well as aesthetic value of the product and
makes product unique
• Sony products are famous for its design
•Features
• These days firms differentiate their product by adding new features to it
• For this company has to pay lot of attention on research & development
• TV ( LCD, LED. Full HD, USB drive, etc.)
• Mobiles ( Bluetooth, touch screen, Higher memory etc)
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18. Product differentiation
•Size of package
•Firm can differentiate their product by changing size and
weight of the product
•Product quality
•Product quality has to be very superior which makes product
highly differentiated
•Quality generates brand loyalty
•Durability
•If product is durable people don’t mind paying premium for the
product.
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19. Service differentiation
• Some times it is very difficulty to differentiate product on physical
attributes . Computer, industrial goods
• Product features are very susceptible to imitation
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20. Service differentiation
•Ordering ease
• It refers to ease with which customer can place his order
• Amazon, flipkart
•Delivery
• This refers to how well and quickly product is delivered to the customer
• Dunzo , Domino pizza
•Installation & demo
• Installation play very important role in industrial as well as consumer product
• DTH connection, and all industrial equipments
•Guarantee and warrantee
• Guarantee & warrantees can be very differentiator
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21. Service differentiation
•Financial assistance
• It can be big differentiator
• Housing , consumer durable ,vehicle
•Maintenance and repair
• Companies provide maintenance and repair for their product and services
•Disposal
• Companies can also differentiate their product on disposal facility
• “Purand do naya lo”
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22. Market Positioning
•In positioning marketer plays with mind of the customer
•Product positioning is process of undertaking all activities
which will create image of the product in the minds of the
customer in comparison to the competitor’s product
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23. The four major positioning errors that a company must avoid are
• Under positioning: Some companies find that buyers have only an
unclear idea of the brand.
• Over positioning: Buyers have very narrow image of the brand.
Example .Tanishq , Aaua Sure
• Confused positioning: Buyers have confused image of the brand
Example : Pepsi once introduced Clear Pepsi
• Doubtful positioning: Buyers do not easily believe the claims made
by brands about the product’s features, price or manufacturer.
Example: Tele shopping product like slimming tea, hair oil, All New
Mobile handset companies like, maxx, karbon, lava,g-five, t-series,i-
ball etc.
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24. Bases of positioning the product
1.Attribute positioning: The company positions itself on the basis of attribute like
size or number of years in existence. Example :Raymonds “ Fine fabric since 1925”
2.Benefit positioning: The company positions its product as leader in providing a
certain benefit. For example Santro positioned itself as India’s simplest car to drive.
3.Use or application positioning: The company positions its products as best for
certain use or application. For example, Fem Bleach
4.User positioning: The company positions its product as best for some user group.
For example, Fair and handsome cream is specially meant for males
25. 5.Competitor positioning: The company claims its products as better than a
named competitor. (TV manufacturer compare it with other brand )
6.Product category positioning: The company positions its product as
leader in certain product category. For example, Bajaj CT 100 was
positioned as leader in the entry segment bikes.
7.Price & quality positioning: The product is positioned as offering the best
value. For example, Big bazzar “Is se sasta aur Achcha kahee nahee
milenga”
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